Uber is aiming to become the largest meal delivery company by buying competitor GrubHub, a move that has come under fire — with one lawmaker calling it 'a new low in pandemic profiteering.'
He argued that a merged food-delivery company could be a boon for both restaurants and diners.
"There is a bunch of consolidation happening on a global basis where bigger players can not only provide better service for restaurants and consumers, but can provide a better service kind of on an economic basis that is sustainable," Khosrowshahi said. But the merger chatter comes as cities across the country are cracking down on food-delivery apps by capping the fees they can charge per order. Some restaurant owners say the fees, which can range from 10% to 40% of the total bill, hurt their bottom lines at a time when the industry is struggling to survive.
Companies like Grubhub counter that they are widening restaurants' customer bases and that the higher-end fees reflect the additional marketing services that they provide to restaurant owners who choose it. Food delivery apps also contend it would be more costly for restaurants to develop their own technology and pay for their own drivers to deliver meals.A deal between Uber and Grubhub may run into problems with federal regulators.
U.S. Rep. David Cicilline, D-R.I., who chairs the House's antitrust subcommittee, has come out in opposition of a deal. In a"Uber is a notoriously predatory company that has long denied its drivers a living wage," Cicilline said."Its attempt to acquire Grubhub — which has a history of exploiting local restaurants through deceptive tactics and extortionate fees — marks a new low in pandemic profiteering.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Uber Reportedly In Talks To Acquire GrubhubI’m a San Francisco-based reporter covering breaking news at Forbes. I’ve previously reported for USA Today, Business Insider, The San Francisco Business Times and San Jose Inside. I studied journalism at Syracuse University’s S.I. Newhouse School of Public Communications and was an editor at The Daily Orange, the university’s independent student newspaper. Follow me on Twitter rachsandl or shoot me an email rsandlerforbes.com.
Lire la suite »
Uber is reportedly in talks to buy GrubHubUber is in talks to buy GrubHub in an all-stock deal, The Wall Street Journal reports. Uber first approached GrubHub earlier this year with an offer, but the two companies are still in talks, according to the WSJ. This comes a few months after reports emerged that GrubHub was looking to sell Uber,
Lire la suite »
Uber in Talks to Acquire Grubhub Amid Delivery App BacklashThe deal isn’t finalized, but at least one source said it could go down as soon as this month.
Lire la suite »
Uber Technologies Makes Takeover Approach to GrubhubA potential deal under discussion would unite two of the biggest players in meal delivery at a time when the coronavirus pandemic has sparked a surge in demand for their services.
Lire la suite »
Uber Approaches Grubhub With Takeover Offer(Bloomberg) -- Uber Technologies Inc. has made an offer to acquire Grubhub Inc., in a move that would build out its food-delivery platform even as it shutters parts of its own service abroad, according to people familiar with the matter.The companies are in talks about a deal and could reach an agreement
Lire la suite »